Enough took place in June Facebook Calibra payment system based on the new Libra cryptocurrency. Most interestingly, a specially created independent non-profit representative organization included big names like MasterCard, Visa, PayPal, eBay, Uber, Lyft and Spotify. But problems soon began - for example, Germany and France digital currency Libra in Europe. And quite recently the first member to decide to leave the Libra Association.
However, the troubles of Facebook's project to create a global digital currency did not end there: now, large payment companies, including Mastercard and Visa, have withdrawn from the group behind the project. Both companies announced Friday afternoon that they would not be part of the Libra Association, as were eBay, Stripe, and Latin American payment company Mercado Pago. The thing is that international regulators continue to express concern about the project.
As a result of this, the Libra Association is essentially left without any major payment companies as its members, which means that the project can no longer expect to become a truly global player that will help consumers transfer their money to Libra and facilitate transactions. The remaining members of the association, including Lyft and Vodafone, include mainly venture capital funds, telecommunications, technology and blockchain companies, as well as non-profit groups.
“For the time being, Visa has decided not to join the Libra Association,” the company said in a statement. “We will continue to assess the situation and our final decision will be determined by a number of factors, including the ability of the Association to fully meet all necessary regulatory expectations.”
Facebook project lead, former PayPal CEO David Marcus, tweeted that it's not worth putting an end to the fate of Libra after the latest news, although, of course, all this is not good in the short term.
Libra's head of policy and communications, Dante Dispart, noted that the plans remain the same, and the Association will be established in the coming days. “We are focused on moving forward and continue to build strong associations with some of the world's leading businesses, social impact organizations and other stakeholders,” he said. “While the association’s membership may grow and change over time, Libra’s governance design principle and technology, as well as the open nature of the project, ensure that the payment network remains resilient.”
The main problems at Facebook are perhaps in the US. The country's Federal Reserve Chairman Jerome Powell, for example, believes the project cannot be approved until officials understand the mechanisms for dealing with serious problems in the areas of privacy, money laundering, consumer protection and financial stability.
And three days ago, a pair of senior Democratic senators wrote to Visa, Mastercard and Stripe voicing their concerns about a project that would likely boost international criminal activity. “If you take it upon yourself, you can be sure that the regulators will closely monitor not only Libra-related payment activity, but also any other activity,” Senator Sherrod Brown and his colleague wrote in letters. Democratic Senator Brian Schatz.
Facebook CEO Mark Zuckerberg is scheduled to testify before the US House Finance Committee on October 23 about the project.
Source: 3dnews.ru